Strategies to grow in an uncertain market
By Brandon Pierpont
“I need more leads.”
After consulting with over 1,000 painting companies and partnering with more than 350 of them, this is the marketing need I hear most often. And when the economy slows – whether leads are down, sales are taking longer to close, or both – I hear it even more.
Leads are critical. They are the lifeblood of your business, and without them, your
company will eventually die.
But here’s a dirty little secret: You don’t need as many new leads as you think you do to hit your goals. And there’s no time this matters more than during economic uncertainty.
I love economic uncertainty. It’s when well-run companies with a bright future have some of their most game-changing years. Felix Dennis, founder of Maxim Magazine, famously said, “Downturns are when market share is won.”
So as we look toward the winter of a somewhat unusual year for the painting industry, let’s discuss how to win more market share!
Strategy 1: Maximize the Value of Your List
Whether you’ve been operating for under a year or more than 20, you likely have a list of past clients and past leads (people who expressed interest in your company but didn’t end up hiring you).
The average homeowner in the U.S. completes some form of professional painting project every 3-5 years. So odds are good that some of those people on your list have a painting need right now, just waiting to be addressed by you.
Reach out to your list quarterly. Instead of sending just one email or newsletter, send a series of emails and texts over about 10 days, all tied to a specific quarterly offer.
Automate these messages using a CRM (customer relationship management) software to make it much easier. I like DripJobs and PaintScout.
Pair these messages with manual phone calls from your team to everyone on your list and voilà, you’ve just created some red hot leads for yourself, for free.
Strategy 2: Create More Offers
“Book your free estimate now.” This is a very common (and fairly bland) offer in the painting industry.
To stand out, develop some more compelling offers. Then run these offers in your ads, as well as in your quarterly marketing campaigns from Strategy 1.
Some examples of offers include a free driveway pressure wash with any full exterior painting project, 10% off all interior projects reserved now for the winter, a free paint upgrade, or a free touch-up warranty.
Make your offers either scarcity-based or time-based (or both). Scarcity means you offer only so many (e.g. “the first five people to book”), and time-based means the offer disappears at a certain date (e.g. “this month only”).
To maintain ethical credibility with both your customers and your team, honor those limits. You’ll likely end up saying “no” to some potential projects that come in after those deadlines expire. While it stings to leave money on the table, honoring those limits will strengthen your company’s brand long-term.
Strategy 3: The Money is in the Second, Third, and Fourth Conversations
Homeowners today are taking longer to pull the trigger. Projects that used to close in a week now average 12-14 days. While that may seem like bad news, many of the painting companies we work with are using it to gain ground. The key is in the follow-up.
Just about every painting contractor has this in common: They have no structured follow through process after delivering an estimate. By building consistent follow-up into your sales process, you can stay on the homeowner’s radar long after other contractors have dropped off.
When the homeowner finally decides to pull the trigger and hire someone, you’ve become a market of one. You cared enough to continue the conversation, keeping you top of mind and positioning you as the best buying option for that homeowner.
Use this longer buying process to land more projects, and let other painting companies complain that their leads aren’t closing.
Strategy 4: Measure Marketing on a 90-Day Rolling Basis
Knowing sales are taking longer to close means we need to measure our marketing results differently. Rather than only looking at the leads you generated this month, measure your marketing on a 90-day rolling basis. How many leads have you generated over the past 90 days, and how many of those have you closed?
Assessing your marketing through this longer timeline will give you a better sense of which marketing channels are working, and which aren’t. You can then make more informed adjustments to your marketing budget to maximize return on investment.
Strategy 5: Upsell and Downsell Effectively
Economic uncertainty makes buyers cling to their dollars a little tighter. Although plenty of painting projects are still being sold, some buyers’ fear causes them to hesitate. This is where a nimble sales process can make the difference between a lost sale and a profitable one.
When a homeowner balks at your price, consider offering a downsell option. Note this is different from a discount, because sacrificing your profitability is never a good idea.
If the color transition is minor, perhaps you could meet this particular homeowner’s needs with just one coat of paint rather than two. If the homeowner is only painting a few bedrooms and is very price-conscious, perhaps you can meet their needs while excluding the ceilings. And of course a paint downgrade is always an option.
Be sure to thoroughly explain the drawbacks of any downsell options you offer to set proper expectations. Being flexible with downsells can oftentimes save a sale that otherwise would have been lost.
Similarly, be ready and willing to upsell those homeowners who are comfortable with the investment but clearly have additional needs they haven’t yet discussed.
Wouldn’t a new exterior paint project complement that interior repaint so well? Because your crew will already be on-site and your cost of marketing for this new sale will be zero you can offer the exterior project at a more competitive rate. Most painting companies won’t think to bring up additional needs as potential upsells, leaving money on the table.
Through effective downsells and upsells, you can increase your close percentage as well as the average ticket size of your jobs.
Strategy 6: Lean Into Repeat and Referral Business
This is similar to maximizing the value of your list, but more in real time. Think about new projects with a holistic marketing mindset.
When you complete a homeowner’s painting project, that is just the beginning. Your sales objective needs to also include that homeowner’s friends and family, neighbors, and anyone else local in his or her sphere of influence. It should also include all of that homeowner’s future painting needs.
Through crafting professional repeat and referral business programs, you can use each project as an opportunity to book additional projects. When lead cost is high and buyers are dragging their feet to close, turning each project into additional leads is critical.
To create strong repeat and referral business programs – choose incentives, build physical sales collateral, and communicate these programs post-project. Rather than casually asking the homeowner after the project if they know of anyone else who needs painting, hand them an official pamphlet (or fridge magnet) branded with your “Friends and Family Program.”
As an example, if your painting company is named Smith Painting, then hand the homeowner a fridge magnet with calendar (so they keep it) that says “Smith Painting’s Friends & Family Program – Every friend you refer will enjoy 10% off their project, and you’ll receive a $100 Amazon gift card as a thank you for helping us spread the love.
Build similar messaging into follow-up emails and phone calls from your team to remind your customers about your program.
Strategy 7: Sell Winter Projects Now
Now is the time to fill your winter calendar. If your production schedule is full, then offer a slight discount (I like 10%) to homeowners who are willing to wait until winter to complete their interior painting project
Not only will this reduce your seasonality and help keep your crews busy over the winter, it can actually improve your close percentage by offering a deal to customers who are willing to wait.
Be careful pushing this offer on customers who prioritize a quick timeline, as it can make your company appear overly busy and backfire. But for those homeowners who aren’t in a rush – offering this future discount may be the reason they end up choosing your company over a competitor’s.
Always take a down payment when selling future work to make sure that business stays locked in.
Bonus Strategy 8: Know Your Numbers
Knowing your numbers is mandatory. When using some of the above strategies, such as offering a slight discount to homeowners willing to wait until winter to complete their interior project, it’s essential to know your project’s gross profit.
Job costing, accounting for cost of marketing and sales, and knowing your overhead are all essential to scaling your painting business profitably. The painting businesses that suffer most during economic uncertainty are those who either can’t close enough business, or even worse those who land a lot of jobs but are unprofitable.
If you don’t know your average gross profit and your company’s net profit, let this be a wake up call to get your finances dialed in.
Final Thoughts
Economic uncertainty doesn’t have to be a time of shrinking sales and playing defense. For well-run painting companies, it can be the perfect environment to gain market share, deepen client relationships, and strengthen profitability.
By maximizing your list, creating compelling offers, following up diligently, measuring results over longer timelines, and using smart upsell and downsell tactics, you can turn today’s challenges into tomorrow’s growth.
Downturns are when market share is won. The only question is: Will you be the one to win it?